Dude its nothing like Virtual On, Virtual On is actually based and inspired on the most part by Gundam series and the guy who designed the Mobile Suit or mech designs for Gundam 0080 and 0083 OVAs was hired to design the Virtualroids/Cybertroopers.
Virtual On is one on one combat except for Force which switched to 2 on 2. Gundam Extreme VS is actually as a video game based on the arcade game called Mobile Suit Gundam DX that was made by Capcom arcade division on Sega Naomi 1 hardware way back in the days (Virtual On was Model 2, Model 3, Hikaru arcade hardware) Later Gundam VS Arcade titles were developed on Sony/Namco System 243 hardware based on PlayStation 2 like MSG VS Zeta Gundam and MSG VS Double Zeta (working from memory here without looking for links or looking at all the games I own)
This new Gundam VS Extreme is very wild in its gameplay, it features new Mobile Suits/Mecha that seem to violate the laws of the Gundam Physics but I guess thats why its extreme and why some like the one the guy was using had that special armor/power/booster pack, anyways this game is developed on the Sony/Namco System 357 which is basically a PS3 mainboard as in Cell BE cpu, XDRDRAM, and RSX GPU basically the same as a PS3.

Posted by TinksMost game systems have two sticks on their controllers now
Dreamcast needed twin sticks because it had one analog stick

Well the Twin Sticks were also a peripheral that Sega sold like the arcade steering wheel, the light guns (for Virtua cop, House of the dead, etc), the arcade fighter joystick/buttons for Virtua Fighter, etc.

I have the Sega Saturn Virtual On Twin Stick pack, I frigging love it, when Dreamcast came out some company made an adapter to use it perfectly on the then new console, I snapped that up too. The current console twin analog sticks are nothing like having the real Twin Stick experience but if you get used to it you might end up getting really good and not thinking you are missing out... until you battle someone on the arcade machine or on a old console with the Twin Sticks.

Anyways the Gundam VS uses a very different button set up and combat is very different from Virtual On, its a shame Virtual On never caught on even in Japan, I remember reading that there were plans for an Anime OVA series and also for Panzer Dragoon way back in 1997 but it got scrapped when Sega shifted to Dreamcast by dumping the Saturn. Oh well I guess its also a shame that imho Sega just has not really seriously tried to remake Virtual On even though they kind of tried... this gen has basically been all about FPSs anyways so whatever.